Young people have been hit with a double whammy: increased student loans and a rough job market. This has made it extremely difficult, if not impossible, for these young people to begin paying down their student loans. Many of these young adults are beginning to examine whether bankruptcy can give them a fresh start form these loans. Unfortunately, student loans generally cannot be discharged in Chapter 7 bankruptcy. However, a St. Louis Chapter 13 Bankruptcy Attorney may be able to help get a student current on their student loans.
St. Louis Chapter 13 Bankruptcy Attorney on How Chapter 13 Can Help with Student Loans
While students loans are generally not dischargeable is bankruptcy, there are benefits to filing Chapter 13 if you have used up your forbearances and the loans have gone to collections. These include:
- Automatic stay to prevent all collection activity
- Reduced monthly payments
By reducing your monthly payments, it may give you the opportunity to save up money to begin paying your loans once the bankruptcy period has ended. A St. Louis Chapter 13 Bankruptcy Attorney can give you an idea of what your monthly payments will be under this type of bankruptcy.
People deep in student loan debt are simply unfortunate people. They got caught up in a bad economy at the same time that college tuition rates were skyrocketing. They are, unfortunately, a perfect example of a person who did nothing wrong yet faces bankruptcy all the same.
If you have exhausted all your student loan options and you are at your wit’s end, contact a St. Louis Chapter 13 Bankruptcy Attorney at The Westbrook Law Group today. Together, we can work out a repayment plan that lets you live your life without being crushed by student loan payments.